Asia, LatAm drive US Fe scrap exports in Feb
US ferrous scrap exports rose in February from a year earlier as elevated exports to Asia and Latin America offset a downturn in shipments to Turkey.
US exports rose by 24pc to 1.32mn metric tons (t) in the month from February a year prior, according to US Department of Commerce data. Year-to-date exports rose by 45pc to 2.8mn t.
Bulk and container volumes
US exports of bulk ferrous scrap grew by 13pc to 753,000t in February because of increased shipments to Asia and Latin America.
Bulk exports to Turkey dropped by around 25pc to nearly 221,000t, hitting a 10-month low. Bulk volumes to South Korea also declined, falling by 63pc to 77,000t.
But shipments were up to countries that did not receive bulk vessels in February 2019, helping to lift US bulk exports from a year ago. These included 62,000t to Peru, 38,000t to Brazil, and 57,000t to Thailand, plus additional tons to Mexico and Bangladesh. Mexican shipments rose to 63,000t from 14,000t, while Bangladesh-bound cargoes grew to nearly 121,000t from 32,000t.
Containerized scrap volumes also increased in February [in spite of a worldwide difficulty in container availability caused by the spread of Covid-19](direct.argusmedia.com/NewsAndAnalysis/Article/2075572).
US containerized exports increased by 46pc to 418,000t, mainly driven by more tons shipped to Malaysia and steady demand from Taiwan, the largest consumer of US containerized scrap.
Malaysian containerized imports from the US more than tripled to 135,000t, while Taiwanese containers ticked up by around 5pc to almost 110,000t.
East coast exports grew by 26p to 526,000t in the month thanks to the bulk shipments to Peru, Brazil, and Mexico. Year-to-date volumes rose by 46pc to 1.09mn t.
Turkish-bound vessels exported 199,000t from the east coast, a 33pc decrease from a year earlier.
Exports to India increased by 22pc to 35,000t, while Greece-bound shipments rose by nearly 30pc to almost 31,000t. Exports to Pakistan grew by nearly 48pc to 30,000t.
Shipments from New York City led the month at 159,000t, down by 5pc from the prior year. Philadelphia shipped 95,000t, more than three times the amount exported in February 2019. Baltimore exports held flat at 76,000t.
West coast exports ticked up by 10pc to 543,000t. Year-to-date volumes increased by 39pc to 1.2mn t.
Volumes to Bangladesh rose to 91,000t from 34,000t, while Malaysian exports doubled to nearly 75,000t. Exports to India and Thailand also increased to almost 48,000t and 71,000t, respectively, up from less than 8,000t each in February 2019.
Taiwanese volumes off the west coast fell by 9pc to 101,000t, while Vietnam-bound tons slid by around 16pc to 54,000t. South Korean shipments also dropped, falling by 64pc to 72,000t.
Scrap volumes exported from Los Angeles topped the west coast in February, despite falling by 13pc to 206,000t from a year earlier. San Francisco followed with 172,600t, a 65pc increase on the year. Bulk exporters in the Seattle-Portland region increased export volumes by 17pc to 157,000t.
Gulf coast exports totaled 42,000t, up from around 13,000t a year earlier.
Year-to-date totals rose to nearly 116,000t from 28,000t. Most of the tonnage in the month stemmed from a 26,000t shipment to Peru from Tampa, Florida.
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Ge buyers seek new supply, alternatives as demand rises
Ge buyers seek new supply, alternatives as demand rises
London, 30 September (Argus) — Germanium consumers around the world are looking for alternatives while producers aim to lift output, as demand increases while restrictions on exports from China reduce availability. Prices for 99.999pc germanium metal exported from China have soared to $2,580-2,680/kg fob from $1,450-1,550/kg at the start of June and $1,110-1,210/kg at the start of 2023, according to Ar gus assessments. The upper end of the range in Europe tipped past $3,000/kg cif at the start of September and remains there. Germanium dioxide prices have similarly climbed. Demand for germanium for defence and advanced computing applications is growing. The adoption of artificial intelligence (AI) in a range of industries is driving strong demand for silicon-germanium owing to the compound's ability to operate at higher frequencies and lower power. That makes it well suited to the higher performance and efficiency that AI requires, according to Israeli firm Tower Semiconductor. Tower expects the utilisation rate of its Fab 3 facility to hit full capacity in the third quarter, up from 55pc in the second quarter in response. Beyond AI and data communications, automotive manufacturers are exploring the use of silicon photonics in light detection and ranging (LiDAR), the company said. As advanced driver-assistance systems (ADAS) become standard and autonomous vehicles are rolled out, consumption of germanium in infrared optics for thermal imaging cameras and night vision devices is increasing. But consumers are concerned about security of supply. The US increased its imports of germanium metal and dioxide in 2023 by around 20pc year on year to 38t, according to the US Geological Survey. Exports from China, the world's largest germanium producer and exporter, dropped sharply after the government introduced export controls in August 2023. Given the use of germanium in optical components, power devices and sensors, the US Department of Defense (DoD) is working with suppliers to ensure it has sustainable access. The Defense Logistics Agency has a partnership with LightPath Technologies to replace germanium in certain DoD applications. LightPath is working to reduce the amount of optics it produces from germanium, to reduce the risk of supply chain disruption and help customers convert their systems to use optics made from its Black Diamond chalcogenide materials, the company's president and chief executive, Sam Rubin, said in its second-quarter earnings call. LightPath's infrared component sales fell by $1.7mn, or 36pc, primarily after its largest customer did not renew a large annual contract for germanium-based products. The company last week announced a $500,000 initial production order for thermal imaging assemblies using Black Diamond from a new tier-1 defence customer. 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Mining exploration companies such as Anson Resources and EV Resources in Australia and Cantex Mine Development in Canada are pursuing projects with germanium content for potential production. But the fastest way to do so is by processing tailings to extract germanium. For instance, Hong Kong Sinomine Rare Metals, which has acquired the Tsumeb copper smelter and polymetallic tailings pile in Namibia, recently estimated that the tailings contain 746.21t of germanium metal. The company plans to add a germanium-zinc smelting production line to the copper smelting line, to commercialise output "as soon as possible". Earlier this year, Belgium's Umicore signed a long-term agreement with STL1, subsidiary of Democratic Republic of Congo state-owned mining firm Gecamines, to optimise germanium production at STL's processing facility commissioned in 2023 at the Big Hill tailings site in Lubumbashi. STL's germanium previously entered the market through third-party refiners outside the country. The company is looking to increase the value it generates from the metal by refining it domestically, while Umicore will diversify its sources of germanium supply with an offtake of "substantial volumes" for its downstream optical and electronic products. Umicore expects to refine the first test volumes of concentrates in the fourth quarter, and help analyse the germanium content in the tailings to further develop downstream products. A continued rise in prices could see further refining and recycling capacity come on line, unless substitution in germanium's various growing applications becomes more widespread. By Nicole Willing Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
CME N.EU HRC futures rally on China stimulus
CME N.EU HRC futures rally on China stimulus
London, 30 September (Argus) — North European hot-rolled coil futures prices rallied on the CME Group's contract today, following increases in the Chinese market. In the brokered market, November rose by €35/t from the 27 September settlement to €630/t in a 2,500t trade, while January traded at €650/t for 5,000t, up by €20/t from the 27 September settlement. October was up by €15/t at €580/t, at a steep premium to Argus ' underlying index of €520/t on 27 September. December also rose by €20/t to €645/t. On screen November and December both traded €35/t higher, while March 2025 rose by €33/t to €670/t. Physical market participants attributed the increases to China's rally, and the European Commission confirming changes to how imports are registered, potentially opening the door for retroactive definitive duties in the investigation against Egypt, Japan, India and Vietnam. Eurofer is also lobbying for more import measures to reduce the effects of global overcapacity. The strong futures contango led some derivatives participants to think the first quarter was overpriced, given the structural difficulties still facing the European market, such as Germany's economic slowdown and lower demand from key steel-using industries, such as automakers. "Will Germany really be fixed by January," one source said, suggesting the cost of carry was much lower than the premium in the futures market. In light of the flurry of trading, September was a new record month for the CME's contract, which launched in March 2020. As of 11:21 in London, just over 218,000t had traded on September, up from the previous record of 205,860t reached in January 2023. More volume has traded this year than last year in January-September — around 923,000t has traded this year, compared with around 913,000t in the same period of 2023. By Colin Richardson Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Taiwan's ferrous scrap imports fall 6pc on year in Aug
Taiwan's ferrous scrap imports fall 6pc on year in Aug
Singapore, 30 September (Argus) — Taiwan's ferrous scrap imports totalled 215,245t in August, marking a 6.2pc decrease year-on-year and a 1.8pc drop month-on-month. The reduced import volume was because of buyers avoiding Japan-origin scrap because of a drop in US containerised scrap price from the US west coast. Weak domestic steel demand in Taiwan and low-cost billet offers from China led buyers to limit their ferrous scrap imports. Imports from the US west coast increased by 10.2pc on year and 5.3pc on month as buyers took advantage of falling prices and sought more US containerised scrap. The US accounted for 47.7pc of Taiwan's total ferrous scrap imports in August. The Argus HMS 1/2 80:20 containerised scrap from the US west coast started at a high of $345/t at the beginning of August but dropped to $325/t by 30 August. Scrap imports from Japan fell by 67.5pc from a year earlier to 22,502t in August. The decrease was because the Japanese yen surged, reaching as high as ¥146.17:$1 on 31 August, up from ¥149.20: $1 at the start of the month. A stronger yen meant that buyers had to spend more US dollars for trades, as deals are typically closed in dollars. The reduced imported scrap volumes reflected weak steel fundamentals and expectations of a prolonged downturn during the summer seasonal lull from May to September. An influx of cheap billets from China significantly impacted scrap demand in August. Billet prices were as low as $445-450/t cfr Taiwan in mid-August, trade sources said. Imported ferrous scrap may continue to decline in the coming months if domestic steel demand does not show significant signs of improvement, trade sources said. Some sellers are optimistic about rising scrap prices and volume in the fourth quarter of the year, as slower collection efforts and year-end celebrations usually mean that mills will look to restock more tonnages before then. Taiwan Ferrous Scrap Imports (t) Country Aug % ± vs Jul % ± vs Aug'23 Jan-Aug % ± y-o-y US 102,740 5.31 10.21 856,836 1.85 Japan 22,502 -42.33 -67.48 444,091 -31.64 Australia 4,714 -28.15 -60.99 74,248 -55.62 Dominican Republic 21,952 39.40 57.92 133,572 -17.96 Others 63,338 5.18 54.30 527,058 16.30 Total 215,245 -1.76 -6.19 2,035,805 -10.48 Source: Taiwan customs Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Overcapacity threatens EU decarbonisation: Eurofer
Overcapacity threatens EU decarbonisation: Eurofer
London, 27 September (Argus) — European steelmakers' decarbonisation efforts are at risk because of low-priced imports, according to European steel association Eurofer. "We need to stop the spillover and the impact of that spillover from global overcapacity," Axel Eggert, director general of Eurofer, told Argus , suggesting low-priced imports are "pushing down any possibility for EU steelmakers to generate the margins they need to fund the green transition". "If you don't generate the return you need, you will be unable to make the investments you need. Then even climate targets are at risk. This has to be addressed," he said. With demand declining, particularly in China, and new production being installed in the coming years — in particular in southeast Asia, north Africa and the Middle East — the overcapacity issue will only worsen, Eggert said. Eurofer has been in dialogue with the European Commission, which it says is aware of the problem, and has asked for a structural solution, such as a comprehensive global tariff-like system. It has not requested a Section 232 style tariff, he said. While the EU is not known for the speed of its decision-making and implementation, Eggert said the sanctions on Russia showed it can act quickly when needed. "We do not know what the commission will do. They are aware of the problem, but they need to act fast. We cannot wait a year. That is the challenge," he said. The liberalisation of the safeguard means about 120pc of the 2015-17 import volumes can come to the EU without paying any tariffs, and the impact of this penetration is worsened by demand depression within the EU. The 25pc tariff, even where applicable, is potentially insufficient for some countries too, Eggert said, alluding to the fact that China recently offered into the EU despite dumping and countervailing duties. China could export 100mn t this year, he said, suggesting the country's mills are still exporting despite making losses. Asked about Europe's own overcapacity, Eggert said it is the only major region to have reduced capacity, by about 26mn t in the past 15 years, leading to a worsening trade deficit. "EU steelmakers are continuing to adapt capacity downwards, but we are reaching a point at which further steel capacity reductions will erode the resilience and strategic autonomy of the EU, let alone the negative impact on hundreds of thousands of quality jobs in the EU's steel value chain," he said. By Colin Richardson Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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